There is a common misconception that debts for taxes are not dischargeable in bankruptcy. However, this is not the case. The bankruptcy discharge of taxes can be a powerful tool for tax debtor counsel who understands how to distinguish dischargeable from non-dischargeable taxes and who can skillfully navigate the applicable procedural rules. And unfortunately, legal practitioners who fail to appreciate the fine points of tax debt dischargeability may leave their clients at a severe disadvantage and saddled with the enormous burden of a tax debt that might otherwise have been discharged.
Radmila Fulton and Raymond Schimmel share their years of experience with you so that you can recognize key issues and help advise your clients on the dischargeability of taxes in a Chapter 7 bankruptcy proceeding. The main issues covered include priority taxes & dischargeable taxes, tolling, late returns, interest & penalties, secured tax debts, sale taxes, recent IRS changes and helpful practice points. Additional points discussed: the 3 year rule, the 240 day rule, the unfiled rule, the 2 year rule, the fraud rule, equitable tolling, late tax returns, non-pecuniary penalties, secured tax debt, payroll taxes, personal property taxes, erroneous refunds, debts incurred to pay taxes, the date of assessment and tax debts & the means test. The following cases are also discussed: Young v. United States 122 S.Ct. 1036 (2002), U.S. v. Martin (In re Martin), 542 B.R. 479 (B.A.P. 9th Cir. 2015), In re Nunez, 232 B.R. 778 (B.A.P. 9th Cir. 1999) and IRS v. Smith (In re Smith), 9th Cir. No. 14-15857, July 13, 2016.
Radmila Fulton has been a San Diego bankruptcy attorney since 1982 and she represents debtors and creditors in consumer and business bankruptcy cases. Radmila has been recognized as a certified bankruptcy specialist by the State Bar of California and she has an AV rating with Martindale-Hubbell. She frequently speaks on tax topics to attorneys and legal groups throughout San Diego and Southern California. Raymond Schimmel has been licensed as an attorney in California since 1997 and he has also held a CPA license in Colorado since 1992. He has filed over 1,000 consumer bankruptcy cases under Chapter 7 and Chapter 13 in the San Diego bankruptcy court and has been devoted to the bankruptcy practice area for the last fourteen years.